GRAPHICS Questions Please help

[SStory]

I have a pnlControl in which I am using as a workspace on which to drag
several pictures and drop them.
These are bitmaps that are no more than 150x150 at the largest. I keep up
with them and their related info in a class. At present no controls are
used for this.

What I need to be able to do and am not sure how:

1.) allow the user to smoothly drag the bitmap around inside this
pnlControl using the mouse.
So far I am using a hittest routine to see if inside it and then in
mouse down if it is left button
'store mouse coord
MousePT = New Point(e.X, e.Y)

then in mouse move I am doing this
myobj.left=(e.X - MousePT.X)

This sort of works but the picture doesn't keep up with the mouse.

HOw can I do this better? Remember I am painting this to the screen
with DrawImage and this is not a control.

2.) How can I offer grid support so that the image will snap in place on
grid points like a commerical app? I am not sure how to implement that.
Anyone have any code?

3.) Any links to graphics sites that would better explain how to do away
with flickering and get quick professional responding graphics would be
nice.

I am not talking large images on screen and probably a maximum of 15 and
most of the time around 1-5 images

Any help appreciated.

THanks,

Shane